Nasscom 2008 focuses on corporate board effectiveness
14 February 2008
The Nasscom 'Thought Leaders Conclave', focused on strategies for enhancing the effectiveness of corporate boards, with Prof. Krishna G Palepu from the Harvard Business School delivering the keynote address.
Other panelists included, Pramod Bhasin, CEO, Genpact and Salil Parekh, CEO, Capgemini India. The discussion was chaired by Jerry Rao, Chairman EDS Asia Pacific, formerly Mphasis.
Prof. Krishna provided some insights on impediments to effectiveness that typically plagues boards:
- Lack of clarity on the role of directors
- Lack of crisp and timely information
- Lack of a proper agenda
- Whether boardroom discussion dynamics exist in fact or as mere formality?
- Poor board leadership
Prof Palepu also emphasised that the role of the board members is to protect the long-term interests of the corporation and its external investors.
He further clarified the practices that contribute to making an effective board and stressed that effective boards have:
- An appropriate board composition and size. It should be large enough to staff committees, but not large to prevent a good discussion.
- A sound leader, who can provide direction.
- Streamlined board information focussed on strategic performance metrics.
- A concise agenda
- A Board retreat - where the members, take a couple of days off, and in a different environment, to re-evaluate their existing strategy
The potential framework for an effective board would to be focus the board's agenda on key drivers of value and key risks that can derail the strategy.
